New Money Rates In Annuities: What You Need to Know

Shawn Plummer

CEO, The Annuity Expert

What Are New Money Rates?

New money rates refer to the interest rates that financial institutions offer on new deposits or investments, differing from those applied to existing accounts. These rates are often higher to attract new customers or encourage current customers to invest additional funds.

Understanding New Money Rates

Financial institutions, including banks and credit unions, use new money rates as a strategy to increase their deposits. These rates are typically offered for a limited time and may apply to specific products like savings accounts, certificates of deposit (CDs), or money market accounts.

Examples of New Money Rates

  • A bank might offer a 2.5% interest rate on a new 12-month CD, compared to the standard 1.5% rate for existing CDs.
  • A savings account opened with new funds might qualify for a 1.2% interest rate, higher than the 0.5% offered to current balances.

The Impact of New Money Rates on Savings

New money rates can significantly enhance the growth of your savings, especially in a low-interest environment. By taking advantage of these rates, you can maximize your investment returns.

Comparing New Money Rates

When comparing new money rates, consider:

  1. The interest rate: Higher rates mean more earnings on your deposit.
  2. Term requirements: Some high-rate offers may require you to lock in your money for a certain period.
  3. Minimum deposit: Higher rates might require a larger initial deposit.
  4. Existing customer requirements: Some offers may be available only to new customers or require new funds not previously deposited with the institution.


New money rates offer a valuable opportunity for savers to earn more on their deposits, but it’s important to understand the terms and conditions. By carefully selecting the right offers, you can optimize your savings growth. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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